Shifters of the Production Possibilities Curve (PPC)

Definition

Shifters of the Production Possibilities Curve refer to factors that cause the curve to move outward or inward, representing changes in a country's ability to produce goods and services.

Related terms

Technology: Refers to advancements in machinery, equipment, and processes that improve production efficiency.

Resources: Includes land, labor, capital, and entrepreneurship used in the production process.

Trade: Involves exchanging goods and services between countries, allowing for specialization and increased production possibilities.